This article compares the 2021 performance of 367 actively managed equity-oriented mutual funds with category benchmarks. The 2021 performance refers to the 357-day absolute return from 1st Jan 2021 to 24th Dec 2021. All index returns refer to total returns (including dividends) unless otherwise stated. Note: The goal of this study is just what is…

A reader asks, “I am looking for equity funds that hold foreign stocks (overseas equity) but also hold 65% of Indian equity similar to Parag Parikh Flexi Cap Fund so that it will be taxed as an “equity fund”. Can you help?” The advantage of holding such funds compared to a Nasdaq 100 or S&P…

The association of mutual funds in India (AMFI) publishes aggregate AUM held by different mutual fund investors across fund categories each quarter.  Here are some insights into which type of funds are preferred by high net worth individuals/investors (HNIs) and retail investors. The definition of an HNIs is far from accurate and, in this context,…

A 24-year-old reader who wishes anonymity asks, “I am saving around 50k every month for long term (more than 10-15yrs).  I equally invest 40k in (10k each) Parag Parikh flexi cap fund; Canara Robeco emerging equities; Union small cap fund; Axis midcap”. “I invest in (5k each) IDFC 10 year gilt fund and HDFC developed…

In this article, we analyze the performance of multi-asset mutual funds and discuss when and how to choose them. This is a new MF category introduced when the SEBI mutual fund categorization rules came into force. Thus the existing funds in this category are about three years old or less, barring exceptions like Axis Triple…

Only nine out of 87 thematic or sectoral mutual funds have consistently beaten the Nifty 100 Total Returns Index.  Nifty 100 was used because, if these funds cannot consistently beat a simple large cap index (equivalent to Nifty 50 or Sensex), it makes the entire category unsuitable for retail investors who might make the mistake…

In this article, let us determine what percentage of mutual fund AUM is in passive funds (index funds and ETFs). We shall consider four dates to consider the AUM growth. 1: Sep 2021 (latest at the time of writing); 2: March 2020, when the mark fell due to the pandemic/lockdown. 3: Jan 2018 – Before…

A viewer on our YouTube channel asks, “Sir, Kindly do video…how to redeem only profit from mutual funds without reducing unit’s (if we book profits our capital amount also reducing because units get reduced)”. Experienced investors and regular readers of freefincal would immediately know that the answer to this is: No, it is not possible to…

Sudip asks, “Dear Pattu Sir, Thanks to your advice we now have an office-study-group with 12 people discussing money management. One member claimed that over 15 years, a lump sum investment will always beat a SIP. Is this line of thinking correct? Can you please shed some light on this?” I am delighted to hear…

So many readers and viewers on YouTube want to know more about floating rate mutual funds as there has been enough propaganda that these funds would benefit if there is an increase in interest rate. Does it make sense to invest in floating rate funds? Are there any simpler alternatives? What are floating rate funds?…

Arjun asks, “Can you please write an article on how new mutual fund investors should track their portfolios?” Today “tracking” an investment portfolio has become extremely easy. Investors are spoilt for choice and, at the same time, swayed by fancy pie charts and textured graphs. But is this tracking? In this article, let us consider…

Sriram has an interesting question: “Dear Pattu sir, thanks to your articles, I have just started investing in equity mutual funds with a 15-year goal. For the fixed income part, I would like to use a combination of fixed deposits and gilt mutual funds”. “My asset allocation is 50% equity and 50% fixed income. As…

In response to our article, “Do we need to invest in international mutual funds?“, a reader claimed that the Nasdaq 100 or the S&P 500 would beat the Sensex over the long term for sure. Is this just another opinion based on personal faith, or does it have any past performance support? We find out…